Posted on Saturday, September 22nd, 2012 at 3:40 pm.
As Mervyn King prepares his quill and ink to write what will be his seventh consecutive letter to Chancellor George Osborne, the question is being asked as to how nervous the Bank of England are about inflation. UK inflation is expected to increase further this morning from Junes 4.2% reading. This level is over double [...] Read More...
Posted on Saturday, September 22nd, 2012 at 3:39 pm.
Investors are now viewing a Greek exit as increasingly likely. With political dynamics shifting, a new Greek Government will have to interact with left wing parties that will call for a renegotiation of Greek terms with the Troika. I see a breakdown in said negotiations leaving Greece cut off from funding and thus, in all [...] Read More...
Posted on Friday, July 27th, 2012 at 9:22 am.
Yesterday ECB president Mario Draghi pledged the ECB’s support for the single currency. Draghi declared he is “ready to do whatever it takes” to ensure the survival of the Eurozone. As expected markets across the board reacted positively to the news, the EURO/ USD jumped 1.2 per cent from a session low of 1.2116 to [...] Read More...
Posted on Tuesday, June 19th, 2012 at 4:16 pm.
A volatile day yesterday saw the Euro weaken by over 100 points against the Dollar and Sterling from its Sunday night highs, as the positivity surrounding the outcome of the Greek election was worn away by the need for Greece to form an effective coalition quickly. The hope is that the New Democracy party can [...] Read More...
Posted on Thursday, May 17th, 2012 at 11:06 am.
Meryvn talks, Sterling tumbles. The BoE cut its growth forecast from 1.2% to 0.8% citing the on-going debt crisis as the biggest threat to the recovery of the UK. Mervyn King said the Eurozone is “tearing itself apart without any obvious solution”. My elderly next door neighbour could have told us that. This isn’t the [...] Read More...
Posted on Wednesday, May 16th, 2012 at 3:48 pm.
EUR/USD continues to plunge. My end of week forecast of being in the 1.27s has come around a little quicker than I thought. We’ve been as low as 1.2684 in early European trade this morning. The downtrend still remains however I expect a lot of resistance around the 1.2630/50 level (where we bounced last time [...] Read More...
Posted on Thursday, May 10th, 2012 at 1:23 pm.
EUR/USD has broken through the 1.30 barrier and hit the 1.2910 level in yesterday’s trading. In the overnight Asian session the pair was capped at 1.2968 and there’s been further downside pressure in early London trading. We’re currently quoting around the 1.2940 level. I see a further push lower with a break below 1.2910 opening [...] Read More...
Posted on Tuesday, May 8th, 2012 at 3:14 pm.
Our dear old friend Greece is back in the headlines. The EUR has weakened for the seventh day in a row against the US Dollar and I see this bearish trend continuing. It’s hard to be anything but bearish on EUR. Greek politicians are struggling to form a new Government and the prospect of Greece [...] Read More...
Posted on Friday, May 4th, 2012 at 10:25 am.
Yesterday was a bit of a disappointment with the currency markets quite flat even though there was some key data released. The ECB kept interest rates on hold at 1% which meant there was no great fall in the Euro that may have come with a rumoured interest rate cut. There will be growing pressure [...] Read More...
Posted on Tuesday, April 10th, 2012 at 1:43 pm.
GBP/EUR is starting to get interesting again. After months of flirting with the 1.20 level and then retracing back to the 1.18 level it looks like we may finally see a continued break to the upside on this pair. Are you a buyer of EUR? If you haven’t secured anything above the 1.20 level I’d [...] Read More...